If a situation arises where raising finance isn’t possible, your business is no longer viable and you have personally guaranteed money to creditors, one option available is bankruptcy. Bankruptcy proceedings can be instigated by any of your creditors who are owed £5,000 or more, or you can apply to the court to have yourself declared bankrupt.
What is Bankruptcy?
Bankruptcy is an insolvency procedure in which an individual is no longer required to repay their debts. A bankruptcy petition can be made either by an individual, or one of his creditors, and the court will make a bankruptcy order on the presentation of this petition.
In most situations, this is the worst thing in financial terms that can happen to an individual as:
For a period (usually 12 months) the following restrictions may apply which stop you from:
Despite this, depending on your circumstances Bankruptcy may actually be the most advantageous resolution to your financial situation.
Some advantages of Bankruptcy include;
We offer all our customers a complimentary initial meeting to establish what options may be available to mitigate your situation.
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